Nike to Replace Converse CEO in Bid to Reverse Sales Slump

Nike Inc. is replacing the chief executive officer of its Converse subsidiary as it looks to reverse a lengthy sales slump for the struggling sneaker brand.

Aaron Cain, a vice president and general manager of Nike’s global men’s business based at headquarters in Beaverton, Oregon, will take the top job at Converse in Boston, according to an internal memo seen by Bloomberg News.

Cain, a 21-year Nike veteran, has held roles in the company’s sportswear divisions in North America, Europe and Asia. He takes over for Jared Carver, who’s exiting Converse after two years as CEO.

“The time is right for the next chapter of the brand’s evolution,” the memo said.

Nike confirmed the move. The two executives will work together through the end of the month to facilitate the transition.

Carver didn’t immediately respond to a request for comment.

Converse has struggled to revive sales in recent years, with revenue falling in each of the last eight straight quarters. Sales plummeted 26 percent in its most recent quarter, leaving management scrambling to map a path back to growth.

Nike CEO Elliott Hill is counting on Converse to turn things around as he looks to spark a comeback across the world’s largest sportswear company’s portfolio. Hill, who came out of retirement last year, has worked to undo strategic missteps in recent years by rebuilding relationships with retailers and refocusing the company on sports.

Hill said in the memo that the move is part of an effort to “create greater distinction and dimension for each of our brands around sport.”

Converse, which once provided a steady revenue stream, has become a shrinking piece of Nike’s overall business. The brand accounted for a smaller portion of its parent company’s sales than usual last year, at under 4 percent. That number has largely hovered between 5 percent to 7 percent since Nike began breaking out Converse sales in 2012.

Nike shares are down 2.8 percent this year through Wednesday’s close.

By Kim Bhasin and Lily Meier

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